FEARS have been expressed that industry could end up shouldering too much of the burden of zero-10. Chamber of Commerce president Mark Trenchard said it was important a balance was kept.
Treasury announced in the Budget a fourfold increase in property tax for those companies benefiting from zero-10 and there are signs this would be a favoured target in the future to help balance the books.
‘My concern at the moment is that the overall balance has to be carefully managed in Guernsey to keep us business-friendly.
‘Business has to remain competitive and there has to be an environment people want to come to. We have to be careful we don’t upset that balance,’ said Mr Trenchard.
He said that most people had expected the Budget to be harder than it was.
‘From a business perspective that’s reasonably gratefully received, but business should, however, expect there will be more to come in due course, whether that will wait for next year or not we’ll see.’
People could not expect either direct taxes or indirect taxes to become something that were frozen in the next few years, he said.
There was still a deficit to be filled.
Mr Trenchard said that while the public thought that business was doing well out of zero-10, which scraps corporation tax, that was not generally the case.
‘Particular areas of business, those with large property portfolios, will in the long term come under extra pressure, that’s concerning as it will be inflationary,’ he added.
‘I’m a little bit concerned about business being expected to shoulder a very large proportion of the burden. I would prefer to see it as a general acceptance that the changes are for the benefit of all and everyone has to shoulder that.’
He said that business as a whole had accepted the need for it to carry a greater burden.
‘But I’m concerned as to what degree as that might undermine competitiveness in some areas.’
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